Innovation and market challenges: thinking beyond technology

INNOVATION AND MARKET CHALLENGES: THINKING BEYOND TECHNOLOGYDR. ALLISON MARIE LOCONTORESEARCHER, INSTITUT NATIONAL DE LA RERCHERCHE AGRONOMIQUEVISITING SCIENTIST, FOOD AND AGRICULTURE ORGANIZATIONPRESIDENT, RESEARCH COMMITTEE ON THE SOCIOLOGY OF AGRICULTURE AND FOOD, INTERNATIONAL SOCIOLOGICAL ASSOCIATION (ISA)

THE INTERNATIONAL SYMPOSIUM ON AGROECOLOGY FOR SUSTAINABLE AGRICULTURE AND FOOD SYSTEMSKUNMING, YUNNAN, CHINA 29TH - 31ST AUGUST, 2016

© Y. Chiffoleau

LOCONTO / INNOVATIONS AND MARKET CHALLENGES

What is an innovation?Assumed linear path (invention, design, commercialization):

Scientists and companies invent, with state investment through R&D funding (patent registration) The private sector commercializes and develops products The public sector distributes the benefits to all people (prevent poverty), extension diffuses the new

technologies The State manages environmental and social impacts of technology and innovation Civil Society is a watchdog People are consumers, producers, employees and voters (but not innovators).

But … significant evidence of multi-actor networked paths: user innovation (von Hippel); co-invention (Malerba); open innovation (Chesbrough); open source (Raymond) participatory design (Schuler, Namioka), community innovation (Oost) upstream engagement (Fischer) mid-stream modulation (Fischer), Constructive Technology Assessment

(Rip et al.) cooperative research (EC RTD); democratising innovation (Felt et al) Responsible innovation (Guston), responsible research and innovation (Von Schomberg, McNaughten,

Owen, Stilgoe) social innovation (Stirling), grassroots innovation (Smith)


What is innovation?

Innovative uses of old technologies?


Innovation is a collective process – not only a new technology!

An innovation is a journey (Van de Ven et al. 1999)

“An innovation occurs when new ideas, new technical devices or new forms of organisation meet their users” (Joly 2011).

“Innovation is not simply a technology (or a technical object), it must be the reorganization of institutions, organizations, value chains, businesses to enable actors to innovate on their own terms” (Felt et al., 2007)


The linkages between innovations and markets – not only commercialisation of new products

Markets are : “the collective devices that allow compromises to be reached, not only on the nature of goods to produce and distribute but also on the value to be given to them” (Callon and Muniesa, 2005).

Re-organization of rules and re-allocation of responsibilities between actors provides space for innovation through markets.

Institutional Innovations are new situations, not necessarily new knowledge (or technologies).


The agroecological transition challenge

ROOM FOR INNOVATION!!


Core challenges that can provide opportunities for innovation

Gaining access to sustainable inputs Satisfying consumer demand in terms of quantity and

availability all year long Providing quality guarantees to consumers Finding the right balance between costs and prices Strengthening the capacity of farmers both in terms of

sustainable farming practices and in terms of market knowledge because improving the ability to negotiate value is fundamental

How to make these systems sustainable and attractive to the next generation?


Connecting to markets and relocalizing…Markets for inputs

Inputs Procurement channel BenefitsSeeds Agro-dealer High seed quality (germination)

Own production Reduction of production costsFarmer exchange Availability

Fertilizer (compost, manure, Effective Microorganisms)

Own production Closed production cyclesFarmer exchange “High quality, low price, within short distance”Community network Trust in the product quality

Animal Feed/Fodder Own production Less costly and accessibleLocal farmer AvailabilityCommunity network Know it is organic

Post-harvest materials Agro-dealer Good transportLocal farmer/supplier AvailabilityImporter Availability and better price


Integrated production systems and the creation of local input supply systems

Youth training centre Integrated production model (crop,

livestock, aquaculture and biogas production)

5 regional hubs (training, production, processing, services) that sell inputs (EM, seeds, biorepellents) and buy products from ex-trainees

54% of the value of finished products was internal to the network and 46% constituted product sales with a value of US$ 7,040,540, of which the off-farm sales of finished products accounted for US$ 2,579,830 in 2014


Turning waste into inputs

1989, California law required 50% of waste to be diverted from landfills

In 2008, San Francisco reached a landfill diversion rate of 77 percent, the highest of any city in the United States.

Jepson Prairie Organics, a subsidiary of Recology makes four compost blends for more than 200 vineyards in Northern California who buy the blends and use them to feed the soil.

Recology, Inc. - Owned 100 percent by its employees.


Small-scale agricultural service companies

Creation of small-scale local service companies by youth who are competent in ITC and Drone technology

Example of Agri Load 2 800 eggs of natural predators

are deposited throughout the fields. They live for 3 days and will eat the larvae of the corn borer.

Cost of the operation: 55€/ha o“Same price as a powdered

agrochemical product, but without the waste of time.”

http://www.ouest-france.fr/bretagne/morbihan/un-drone-pour-proteger-ses-parcelles-agricoles-4357375


Uganda FreshVeggies Ltd.

Namibia NOA PGS

Mozambique Earth Market

Kazakhstan Akmola Traditional

France Ici.C.Local

Ecuador Canasta Utopia

Colombia Familia de la Tierra

China Shared Harvest

Chile Kom Keylluhin

Brazil Sateré-Mawé

Bolivia Tarija PGS

Benin Songhai Centre

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

24%

8%

18%

15%

4%

4%

28%

4%

28%

31%

21%

26%

31%

36%

24%

55%

28%

45%

83%

30%

41%

51%

92%

44%

47%

46%

36%

38%

57%

27%

14%

40%

21%

20%

8%

6%

15%

26%

4%

11%

1%

7%

7%

Self provisioning Agroecological channelsConventional Channels Non-monetary Exchange

Connecting to markets and relocalizing…Markets for outputs (products)

Diversity of exchanges Diversity of Agroecological Channels

Public procurement

Events (festivals,..)

Processors

Barter /Exchange

Wholesaler

Small shop

Traders

Supermarket

Restaurants/hotels

Direct sales

Self provisioning

0% 10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Benin (BJ)

Bolivia (BO)

Brazil (BR)

Chile (CL)

China (CN)

Colombia (CO)

Ecuador (EC)

Kazakhstan (KZ)

Mozambique (MZ)

Namibia (NA)

Uganda (UG)

1.0 2.0 3.0 4.0 5.0

Fair Pricing System? (n=35) Fair Price? (n=146)

1 = Very Unfair - 5 = Very Fair

Cou

ntry

- A

vera

ge a

cros

s all

mar

ket c

hann

els

1

1.5

2

2.5

3 Series1

Series1

Paying Higher Prices? (n=46) Willing to Pay More? (n=45)

Country

1=L

ower

; 2=S

ame;

3=H

ighe

r

Valuing products: Are prices fair?

LOCONTO / INNOVATIONS AND MARKET CHALLENGESSource: Y. Chiffoleau (INRA) in FAO forthcoming 2017

New labeling schemes in Farmers’ markets

National random survey in 2013, 42% purchased a product in a ‘circuit court’ during the preceeding month, with a food basket worth 25€/week

http://www.gret.org/2014/06/circuits-courts-quen-pensent-les-francais/ Research-Municipality-Producer-Consumer led

initiative Labels for distance Reduced competition between producers

http://www.gret.org/2014/06/circuits-courts-quen-pensent-les-francais/





KEY FACTSCreated in 2011.Corporation (with "social enterprise" status). 800+ Ruches in Europe, mostly France (729). 126 Ruches in PMR.Ruche-Mama platform: 50+ employees (mainly IT and development).Franchise system: decentralized network of auto-entrepreneurs each manage one or several Ruches. Each Ruche must follow platform specifications (e.g. Ruche opening conditioned on appropriate product diversity. Maximum distance < 250 km. Source: R. Stephens and M. Barbier (INRA)

« La Ruche qui dit Oui! »: - using the internet to link-up locally

"Let's unite to buy the best products from the farmers and artisans of our regions."

Map centered around Paris shows 127 "ruches" (food assemblies).

Ruche intermediary revenue breakdown.


Linking gourmet cuisine and tradition Familia de la Tierra in Bogotá,

Colombia Direct sourcing between local

agroecological farmers and a network of 17 gourmet restaurants

Integration of ‘traditional foods’ into the culinary school curriculum

Collaboration between the National University, Psychiatric Hospital, producers, the Culinary School and Restaurants to rehabilitate ‘lost’ native varieties (beans, yacón)

Source: Nieto and Aguirre in FAO 2016


Community supported agriculture – multi-functional innovation

Brasso Seco Tourism Action Committee Began with Bird Watching – now a vibrant

agri-torusim community Continuous investment, new ideas, new

products, new events in order to value old traditions

Bringing the market into the commuinity


Public procurement for local agroecological food

National regulation for Ecologic Agriculture 2006 - Export = 3PC,

Domestic = PGS Registration with Food Safety

Authority School Breakfast

Camelidos/Quinoa production system

Local, traditional products PGS as the registration

mechanism Direct procurement from local

farm families


Closing the circle – innovating through markets in networks

Agroecological innovation is about picturing where you are in your agroecosystem and figuring out how to make changes in your environment (socio-technical, economic and natural) in order to ensure its sustainability.

We need to be able to imagine this in order to close the circle - we need to enable actors to make changes in their systems from different vantage points

A circular economy is not only the idea of a local, closed or protected system – but it is the facilitation of interactions that enable the knowledge, goods and services to circulate within networks of actors and markets so that all resources are used to the most sustainable extent possible


How to innovate in food systems transitions?


The 6 (Re)s of policy support that can (re)Value agroecology Recognize existing agroecological markets by facilitating the registration of

agroecological farmers with trade and food safety authorities according to appropriate standards

Revise input subsidy schemes to include agroecological and biological inputs (or remove subsidies altogether) and provide financial incentives for creating small-scale agro-enterprises

Reform research and extension programs in order to include agroecology and enable more flexible collaboration and experimentation with producers, private and civic actors

Reinvest in agriculture through public procurement from agroecological producers by adapting the procurement protocols to the local realities of agroecological production (e.g., informal trading relations)

Recreate public spaces for agroecology by providing public facilities that can be used to host farmers’ markets, fairs and festivals for agroecology

Research, via participatory methods, the innovative markets for agroecology and sustainable agriculture in order to better understand how they contribute to Sustainable Agriculture and Food Systems


« In travelling to ‘unpredictable’ places, an object that isn’t too rigorously bounded, that doesn’t impose itself but tries to serve, that is adaptable, flexible and responsive – in short, a fluid object – may well prove to be

stronger than one which is firm »(de Laet, M., & Mol, A. 2000, 226)

Contact: [email protected], [email protected]

Education

Innovation and market challenges: thinking beyond technology